The paper analyzes the Heckscher-Ohlin model’s fit to predict the Lithuania’s foreign trade flows based on the endowments of capital stock and labour in different exporting kinds of economic activities. Authors use correlation and regression analysis to identify the relationship between country’s exports/imports and capital-to-labour ratios. The results found are consistent with previous researches about Heckscher-Ohlin model being of low predictive power in its basic form. The model’s modifications of research & development, intangible assets and information society indicators inclusion increase the predictive power of the model, but since the improvements are not significant, authors conclude that further studies of comparison of Lithuania’s foreign trade partners’ endowments of capital and labour are needed to analyze in their relationship of exports and imports as analyzed bulk foreign trade data may have a bias of mixed patterns of trade with countries with substantially different production factor endowments
